Biden needs to be VERY CAREFUL with Saudi Arabia - Mar 1

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dan_s
Posts: 34714
Joined: Fri Apr 23, 2010 8:22 am

Biden needs to be VERY CAREFUL with Saudi Arabia - Mar 1

Post by dan_s »

We are not energy independent. We will always need to import a lot of oil. Per EIA: In the last six weeks the U.S. has imported from 6.4 to 9.0 million barrels per day of crude oil.

President Biden is seeking to burnish his human rights credentials -- and once again distinguish himself from Donald Trump -- by putting a bullseye on Saudi Crown Prince Mohammed bin Salman. Playing politics with an ally in such a dangerous part of the world risks unanticipated and unfortunate consequences for the United States.

In releasing a three-year-old American intelligence report that blames the Crown Prince for the murder of Saudi writer, Jamal Khashoggi, and then immediately saying he won't penalize the Crown Prince, Mr. Biden has opened himself to relentless pressure from democrats on the left of his party to do something more to punish the Saudi Crown Prince.

Read more: https://www.nysun.com/foreign/bidens-co ... dis/91434/
Dan Steffens
Energy Prospectus Group
k1f
Posts: 455
Joined: Tue May 04, 2010 9:47 am

Re: Biden needs to be VERY CAREFUL with Saudi Arabia - Mar 1

Post by k1f »

What does it mean to say that the market for crude is "global'?
dan_s
Posts: 34714
Joined: Fri Apr 23, 2010 8:22 am

Re: Biden needs to be VERY CAREFUL with Saudi Arabia - Mar 1

Post by dan_s »

Oil prices are set by global supply and demand. Natural gas and NGL prices are primarily set by regional supply and demand.

Because the U.S., China and Europe import a lot of oil (we are not and will never be energy independent), they are forced to accept the fact that OPEC+ controls the world's oil market. Net importers are "price takers".
Dan Steffens
Energy Prospectus Group
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